A perfect storm

The Integ Group’s CEO, Ian Poole*, believes we are heading for the perfect storm but it’s not the sort of storm that will sink the ship if organisations have the foresight to prepare for the inevitable disruption, then they will be the ones that prosper.

Increasingly, companies, government departments and consumers are becoming more comfortable with the concept of technology delivered as a service. In a country richly populated with small and medium-sized businesses, it is no surprise that this technology-enabled model has gained wide acceptance. Small organisations are able to punch above their weight by accessing rich tools on a cost-effective, pay-as-you-go pricing model. Larger organisations, too, are increasingly seeing the value of this model.

As organisations are further propelled by the global financial crisis to remain competitive, many are realising the benefits of shifting parts of their technology overheads out of the capital expenditure column and into the operational expenditure pot. Technology decision-makers are realising that to minimise costs, while simultaneously accessing the latest technology to meet their organisation’s performance metrics, technology delivered as a service is a good option.

The recent announcements of the much anticipated National Broadband Network now means that services will enable download speeds of up to 100 megabits per second. Coupled with the Rudd Government’s vision of reducing carbon emissions by 25% by the year 2020, the business and consumer landscapes will inevitably change, the impact being far reaching for many organisations.

Environmental considerations that received rich media coverage 12-18 months ago now seem to be part and parcel of IT technology choices and purchasing considerations. There seems to now be wide acceptance in the ICT and business community that low power options and minimal carbon footprint solutions are the preferred way to go.

These coinciding elements - the global financial crisis, maturity of technology-as-a-service, high environmental awareness and acceptance as well as the upcoming national broadband network - have indeed created the perfect storm. But what will this mean?

While, to date, the key drivers for technology delivered as a service have been cost and flexibility, in the next five years carbon reduction will become an increasingly relevant addition to this mix. As organisations start to realise the power of broadband, which in many cases will be 100 times faster than speeds currently accessed by many households and businesses, it is likely that Australia will see more and more services being offered on demand, with an inevitable shift towards centralised data centres that will consolidate carbon emissions through more efficient use of technology.

Organisations need to be prepared for such a dramatic shift in the playing field so that they can take advantage of this ‘perfect storm’. Reassessing and aligning their IT and communications strategy around technology-as-a-service as well as opting for low carbon impact solutions is a low-risk way to begin the journey.

As always, it will be those organisations that can most closely align their technology decisions with the anticipated needs of the organisation that will be best placed to make the most of the changing landscape. It will also be the organisations that are planning now, making radical assessments of their IT infrastructure and undergoing long-term planning and looking at a range of delivery models to decentralise their technology requirements that will be best prepared.

Inevitably, there will be technology casualties as on-premise equipment is either made redundant or moved into data centres; however, the confluence of events is too strong to ignore. Smart organisations will heed the early warnings of this perfect storm to minimise redundant technology and make the most of a new world of opportunities.

* Ian Poole is the CEO of the Integ Group, a leading Australian integrator of secure voice, data infrastructure and IP business applications supporting organisations across Australia. A driving force behind the organisation’s success and growth since its formation in 2002, Ian has more than 25 years’ experience in the ICT industry, both internationally and within Australia.